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The standard deviation of the market-index portfolio is 10%. Stock A has a beta of 2.00 and a residual standard deviation of 20%. Required:

The standard deviation of the market-index portfolio is 10%. Stock A has a beta of 2.00 and a residual standard deviation of 20%. Required: a. Calculate the total variance for an increase of 0.10 in its beta. (Do not round intermediate calculations.) Total variance b. Calculate the total variance for an increase of 3 percentage points in its residual standard deviation. (Do not round intermediate calculations.) Total variance

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